Question
The $1,000 face value bonds of ABC Inc have coupon of 6.45 percent and pay interest semiannually. Currently, the bonds are quoted at 103.4 percent
The $1,000 face value bonds of ABC Inc have coupon of 6.45 percent and pay interest semiannually. Currently, the bonds are quoted at 103.4 percent of par and mature in 10 years. What is the before tax cost of debt?
5.49 percent
6.02 percent
5.99 percent
7.18 percent
6.79 percent
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
